When you reach age 62 in New Jersey, you may qualify for the pension exclusion, which allows for a certain amount of tax-free income. But if you earn just one dollar more than $100,000, you won’t be eligible and you’re going to be taxed.

For that reason, many citizens flee the state for locales with friendlier tax policies. And because your tax burden is an important part of your retirement budget, you might find the answer to your retirement plan in another state.

Here’s a look at states that are tax havens compared to New Jersey, based on data from The Tax Foundation, a nonpartisan nonprofit that studies tax policy.

Income tax

Keep in mind we’re just talking about state and local taxes here. Federal tax is not included in the data.

On average, state and local governments across the country collected $1,164 per capita in income taxes in 2016, the most recent year available.

The Tax Foundation said New Jersey collected $1,488 per capita in income taxes.

New Jersey wasn’t the highest. New York ($2,929), the District of Columbia ($2,788), Maryland ($2,276) topped the list.

Seven states don’t tax income at all, but residents of those states still pay other local taxes so the states can make up for having no income tax revenue. Plus, some states collect healthy tax revenue from tourism and business interests, so in many cases, the revenue isn’t being paid by residents.

New Hampshire and Tennessee only tax dividend and interest income. Tennessee is phasing out its dividend and interest tax, so beginning in 2021, Tennessee will join the list of income tax-free states.

Here are the seven states that don’t levy an income tax with a look at how the states make up that revenue.

1. Alaska

Alaska is unusual because it shifts its largest tax burdens to oil and gas companies, so residents pay less overall.

2. Florida

Florida’s tourism, and its higher-than-average sales tax at 6 percent, makes up for the state’s lack of income tax

3. Nevada

Nevada also receives a large chunk of change from tourism - Las Vegas - and benefits from a 6.9 percent sales tax.

4. South Dakota

South Dakota gets its largest revenue from sales tax at a rate of 4.5 percent, but local municipalities can add their own sales taxes until it maxes out at 6.5 percent.

5. Texas

Texas offsets its lack of income tax with revenue from oil and natural gas production. The state is also known for its high property taxes.

6. Washington

Nearly half of Washington state’s tax revenue comes from a 6.5 percent sales tax, plus the highest excise taxes on alcohol and gasoline in the country.

7. Wyoming

Wyoming offsets its income tax-free status with revenue from natural resources.

What about that sales tax?

New Jersey charges sales tax of 6.625 percent. It’s not the highest in the nation, but it’s not insignificant.

Only five states have no sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon.

Alaska, though, does permit local municipalities to charge sales taxes.